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Wednesday, 18 July 2007

Article IX of the 2004-2010 Master Contract

(Effective October 1, 2004)

Maintenance Work Covered by the Agreement

It is agreed that the jurisdiction of the ILA shall cover the maintenance and repair of equipment (which term includes containers and chassis) and such equipment as its members have historically maintained and which is owned, controlled, operated, or interchanged by USMX members including, but not limited to (a) container cranes, (b) container handling equipment and (c) container cranes and container handling equipment which is acquired for new deep-sea terminal facilities.  The ILA’s jurisdiction remains in effect at waterfront container facilities, and/or off-pier premises used for servicing and repair of equipment covered by this agreement, in accordance with the Containerization Agreement.

Further, all said equipment, be it owned, leased or controlled by USMX members and/or signatories to the Master Contract, etc., once it is presented at waterfront facilities, shall be covered by this agreement.

Furthermore, it is recognized that the marine terminal work of all ILA crafts has been traditionally performed on pier and waterfront facilities.  When such marine terminal work is moved off the marine terminal by the terminal operator or by a signatory carrier to facilities in the port area, the ILA shall retain its work jurisdiction, where the work is the work that would have been performed in the marine terminal or port area.

Major damaged equipment must be repaired in the port where the major damage is discovered provided, however, that where a carrier needs to reposition empties or where it is otherwise necessary to its operations, a carrier shall notify the ILA maintenance local of the repositioning and the equipment numbers of the major damage equipment.  Thereafter, it shall also report the time, place and nature of the repairs performed by ILA labor in an ILA port on such damage equipment.  Such notification shall be subject to the audit procedure.

In fulfilling the above objectives, it is agreed that:

  1. No damage equipment shall be loaded aboard ship for export except under the procedures provided below.
  2. No employer or carrier shall permit damage equipment to leave the compound except under the procedures provided herein                  
  3. The employers and carriers shall not enter into any leasing agreement that circumvents the work jurisdiction of the ILA covered under this Agreement.

Determination Procedure

  1. An ILA/Carrier Master Contract Committee has established amended criteria attached as part of the Appendix for a container with major damage in accordance with uniform criteria which relate to safety, structural soundness, roadability and seaworthiness of the various types of containers.  These criteria shall be distributed to the ILA maintenance employees in the inspection (or roadability) lanes at each container terminal.
  2. In accordance with the criteria established in paragraph No. 1, ILA employees may designate a container or chassis which they examine and find damaged (as defined in such paragraph 1 criteria) as out of service on a T.I.R. form and such container shall be placed in a deadline status in accordance with the procedures of the terminal involved.
  3. The carrier shall be notified of such designation as soon as possible and shall have the right to determine that such container or chassis shall either be repaired (in an ILA port of its choosing) or if it disagrees with the ILA determination that such container was damaged within the paragraph 1 criteria, the container in question shall be placed back into service or repositioned as an empty.

Grievance and Audit

The ILA shall have the right to be informed of the action so taken and to grieve the matter, if it so desires, under the terms and conditions of the grievance procedures agreed to by the parties in the Master Agreement.  If it is determined under such grievance procedure that the container in question should have been repaired, the carrier shall pay liquidated damages of $1,000. per container ($2,000. per container for willful violations), as ruled in such determination.

Fact finding and audit under the grievance procedure shall be provided by an independent auditor selected by the parties who shall have the right to audit all applicable documentation of a carrier to determine compliance with this agreement.  Such audit shall be available to the grievance procedure and may be used to establish compliance or the lack thereof.

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